Summary of Corning (GLW) 2025 Conference Call Company Overview - **Company**: Corning Inc. (GLW) - **Event**: Citi's Global TMT Conference - **Date**: September 4, 2025 Key Points Industry and Market Dynamics - **Optical Communications**: Demand has shown unexpected strength, particularly in the carrier space where inventory depletion has led to increased purchasing [7][9] - **Specialty Materials**: Demand remains stable, with no significant changes noted in the mobile consumer electronics sector [6][9] - **Automotive Market**: Light-duty vehicle market is flat, while heavy-duty vehicles are down [6] - **Geopolitical Impact**: Minimal impact from tariffs and geopolitical tensions, particularly with operations in China [8][10] Financial Performance and Guidance - **Q2 Performance**: Corning reported a strong quarter, exceeding risk-adjusted SpringBoard plans [4] - **Revenue Growth**: The enterprise segment of optical communications is expected to grow from $2 billion in 2023 to over $3 billion by the end of 2025, driven by GenAI data centers [24] - **CAGR**: The growth rate for the enterprise business has been upgraded from 25% to 30% over four years [25] - **Operating Margin Target**: Corning aims for a 20% operating margin, with current margins approaching this target [43] Strategic Partnerships and Investments - **Apple Partnership**: Apple is investing $2.5 billion in Corning's Kentucky facility for cover glass production, enhancing capacity and innovation collaboration [14][15] - **Domestic Manufacturing**: Corning has 34 advanced manufacturing facilities in the U.S., with a focus on increasing domestic production capabilities [13] Growth Opportunities - **Solar Business**: Corning's polysilicon business is expected to grow from a $1 billion run rate to $2.5 billion by 2027, driven by increased domestic manufacturing and partnerships [47][48] - **Data Center Interconnect**: A new long-haul network opportunity is projected to be at least a $1 billion market by the end of the decade [40][41] Innovation and R&D - **R&D Investment**: Corning invests approximately $1 billion annually in R&D, focusing on long-term technological advancements [19] - **Emerging Technologies**: Opportunities in foldable phones and AR/VR devices are being explored, with ongoing innovation in glass compositions [62][64] Challenges and Risks - **Market Volatility**: While growth is expected, it may not be linear, with potential lumpiness in demand due to technology transitions [33][34] - **Competitive Landscape**: Increased competition from companies like Amphenol in the optical market is acknowledged, but Corning remains confident in its position [66] Capital Allocation Strategy - **Organic Growth Focus**: Corning prioritizes organic growth investments while maintaining a strong balance sheet and rewarding shareholders through dividends and share buybacks [71][73] Conclusion - Corning is positioned for significant growth across various segments, particularly in optical communications and solar, while maintaining a strong focus on innovation and strategic partnerships. The company is navigating geopolitical challenges effectively and remains committed to long-term investments in R&D and domestic manufacturing.

Core Insights - AIG is focusing on redefining its identity and moving past its historical challenges, with 2025 being a pivotal year for the company [3] - The company aims to enhance its underwriting culture, operational excellence, and disciplined capital management strategy to achieve financial and strategic flexibility [4] Group 1 - AIG's leadership emphasizes the importance of Investor Day in March as a defining moment for the company's future direction [3] - The company is committed to digitizing workflows and integrating advanced technologies like Gen AI to improve operational processes [4] - AIG's strategic initiatives are designed to reposition the company and demonstrate the positive impact of its colleagues' efforts [3][4]

Group 1 - The major theme in the industry over the past few months has been the impact of Generative AI, particularly in website building [2] - There is a significant opportunity for companies to leverage Generative AI to create websites through voice commands, which could transform the business model [2] - The discussion around Generative AI highlights both opportunities and potential risks for companies in the website development space [2]

Market Trends & Stability - The Gen AI landscape is showing signs of stabilization, with fewer new entrants compared to previous periods [1][2] - A significant portion of the top AI applications have consistently remained popular over multiple evaluation periods, indicating a degree of established market presence [2] - Chat applications continue to dominate the AI space, but other categories are emerging [4] Competitive Landscape - While one application leads in web traffic with Gemini following, there is a long tail of applications catering to niche functionalities [9] - Many AI applications with millions of users focus on specific tasks, indicating a market for specialized tools [10] - The availability of open-source models and APIs enables companies to build specialized products for specific customer needs [11] User Behavior & Monetization - Consumers are using multiple AI applications for different purposes, suggesting a lack of consolidation around a single dominant tool [6][7] - Subscription models are emerging, with some costing $200 per month, potentially leading users to make choices based on value [7] - Paid users of generative AI products show similar retention rates to pre-AI subscriptions, suggesting a perceived return on investment [15] Enterprise Adoption - Enterprise adoption of AI is expanding rapidly, with companies transitioning to enterprise solutions much faster than in the past [13] - Some AI companies are generating significant revenue from enterprise clients within a short timeframe [13][14] Investment Strategy - Investment firms are focusing on both model companies and application layer companies [18] - There is a particular interest in companies building vertically-oriented products for specific users with unique insights [18][19]

Summary of Perfect Corp (PERF) FY Conference Call - August 26, 2025 Company Overview - Perfect Corp is a Taiwan-based company with approximately 400 employees, primarily focused on R&D in the beauty and fashion app space [2][3] - The company was founded a decade ago and initially operated as an app maker before transitioning to B2B software solutions for beauty brands [4][5] Revenue Breakdown - Revenue sources: Approximately 50% from the US, 30% from the EU, and 20% from Japan [4][5] - Initial revenue breakdown at listing (2022): 75% B2B and 25% B2C; as of 2023, it has shifted to roughly 50% B2B and 50% B2C, with projections for 2024 indicating 60% B2C and 40% B2B [7][8] - B2C apps operate on a freemium model, with subscription prices increasing from $5-$7 to $79 per year [8][9] Product Offerings - B2C apps include "You Can Makeup" and "You Can Perfect," focusing on photo editing and virtual try-ons [6][9] - B2B services include virtual try-ons for makeup and skin analysis, with clients such as Estee Lauder, LVMH, and Chanel [7][19] - The company has over 800 brand clients and 914,000 SKUs running on its software, showing a growth of over 20% in brand clients since 2021 [19][20] Financial Performance - 2024 growth rate: 12.5%; guidance for 2025 is 13% to 14.5% [25][26] - Gross margin decreased from 79% to 75% year-over-year due to lower margins in B2C compared to B2B [26][27] - Positive operating cash flow with $167 million in cash and cash equivalents [28] Strategic Initiatives - Recent acquisition of Wana for $6 million to enhance offerings in AIAR technology for luxury brands [24] - Focus on reinvesting in R&D for premium Gen AI features and expanding B2B client base [29][30] Market Challenges - The company faces macroeconomic pressures affecting clients like Estee Lauder and LVMH, leading to tighter budgets [42] - Currency exchange issues due to the appreciation of the Taiwanese dollar impacting operational costs [28][29] Competitive Landscape - The company maintains a 90% retention rate in B2B, indicating strong client loyalty [47] - Differentiation from competitors lies in continuous R&D investment and user-friendly app design [44][45] Technology and Innovation - The company is exploring advancements in 3D virtual try-ons for clothing, although current technology is not yet ready for full implementation [37][38] - Color calibration challenges exist across different devices, particularly on Android, requiring significant investment in accuracy [50][51] Conclusion - Perfect Corp is positioned for growth with a strong focus on B2C expansion and innovative technology solutions, despite facing market challenges and competitive pressures [30][42]

Core Insights - EPAM Systems reported Q2 2025 earnings of $2.77 per share, exceeding the Zacks Consensus Estimate by 6.1%, and up from $2.45 per share a year ago [1][8] - The company's revenues for Q2 2025 reached $1.35 billion, surpassing the consensus mark by 1.37%, reflecting an 18% year-over-year growth [2][8] - EPAM's shares increased by 6% following the strong earnings results and positive guidance for the full year [2] Financial Performance - The year-over-year revenue growth was driven by strong performance in various industry verticals, particularly Financial Services, which saw a 34.4% increase [3][8] - Revenues from Financial Services accounted for 24.3% of total revenues, amounting to $328.3 million [3] - Other segments also showed growth: Consumer Goods, Retail & Travel revenues increased by 6.2% to $268 million; Software & Hi-Tech revenues rose by 21.2% to $204.7 million; Life Sciences & Healthcare revenues grew by 11.7% to $156.5 million; Business Information & Media revenues increased by 2.8% to $170.4 million; Emerging revenues surged by 28.7% to $225.5 million [4][8] Profitability Metrics - Non-GAAP gross profit increased by 9% year over year to $407.7 million, with a gross margin expansion of 140 basis points to 30.1% [5] - Non-GAAP operating income rose by 16.3% year over year to $202.9 million, with an operating margin expansion of 20 basis points to 15.0% [5] Balance Sheet and Cash Flow - As of June 30, 2025, EPAM had cash and cash equivalents of $1.05 billion, down from $1.18 billion as of March 31, 2025 [6] - Long-term debt slightly decreased to $25 million [6] - Cash flow from operations was reported at $53.2 million, with free cash flow at $43.4 million [6] Future Guidance - For Q3 2025, EPAM expects revenues between $1.365 billion and $1.380 billion, indicating a year-over-year growth of 17.6% at the midpoint [9] - Full-year 2025 revenue growth is projected to be between 13.0% and 15.0%, with organic constant currency growth expected between 3.0% and 5.0% [11] - GAAP diluted EPS for Q3 is anticipated to be between $1.89 and $1.97, while non-GAAP diluted EPS is projected between $2.98 and $3.06 [10]

Summary of Key Points from the Conference Call Industry Overview - The focus for the 2Q25 earnings season is on consumer Internet stocks, particularly whether negative earnings revisions have ended or will continue, impacting investor sentiment towards digital entertainment leaders and consumer Internet names [3][34][24] - The average share price of consumer Internet stocks fell by 5% over the past three months, while digital entertainment leaders saw a 31% increase [3][20] Earnings Revisions and Stock Performance - Consumer Internet companies experienced an average 20% cut in 2025 Bloomberg consensus adjusted EPS estimates over the past three months [9][20] - Despite the earnings estimate cuts, the average share price decline for these companies was only 4%, indicating a potential disconnect between earnings expectations and market performance [20][24] Competitive Landscape - Investment intensity in the food delivery and quick commerce sectors is expected to peak in 3Q25, with Alibaba and Meituan being the primary competitors [13][34] - Alibaba's competitive advantage is bolstered by its financial resources, with an estimated Rmb600 billion in cash and equivalents, compared to significantly lower amounts for JD and Meituan [34][13] Company-Specific Insights Alibaba - Alibaba's narrative has shifted towards cloud and AI, with a capex plan of at least Rmb380 billion over the next three years [30][51] - The company is expected to see cloud revenue growth of 22% year-on-year in FY26E, driven by its cloud-first strategy [30][44] Meituan - Meituan faces challenges due to its limited financial resources compared to Alibaba, which may lead to market share loss and a negative impact on long-term earnings outlook [3][34][39] - The company captured 80% of industry revenue share and 99% of industry profit in 2024, but the new competitive landscape suggests potential downside [3][34] Pinduoduo - Pinduoduo plans to invest over Rmb100 billion in building a high-quality e-commerce ecosystem, which is expected to slow revenue growth to 5% year-on-year in FY25E, down from 59% in 2024 [14][16] Trip.com - Trip.com is accelerating its overseas expansion with a focus on talent acquisition and capital investment, establishing a Rmb1 billion tourism innovation fund [17][18] Baidu - Baidu is undergoing a significant AI transformation, with AI-generated content in search results expected to reach 70% by 3Q25, which may negatively impact ad revenue [19][46] Investment Recommendations - The report suggests selective rotation back to consumer Internet operators from digital entertainment leaders, considering valuation and recent earnings revisions [3][24] - Top picks in the consumer Internet sector include TME, Kuaishou, Alibaba, Trip.com, and Tencent [3][24] Conclusion - The upcoming earnings season will be critical in determining the trajectory of consumer Internet stocks, with a focus on management commentary regarding competition and financial guidance for the next quarters [3][34]

Financial Performance - Akamai's cloud infrastructure services revenue is up 30% year-over-year and is expected to accelerate to 40%+ year-over-year by the end of the year [1] - Akamai achieved a strong beat on the quarter with earnings per share up 9% at $1.73 [2] Strategic Direction & Market Opportunity - Akamai is pursuing a tremendous market opportunity in cloud infrastructure, driven by customer demand and strong tailwinds from Gen AI [1][3] - Akamai's distributed platform, with points of presence in 750 cities, allows it to offer enterprise compute instances and containers closer to end users, resulting in lower latency, better performance, and potentially lower prices [3] - A hyperscaler is an early adopter of Akamai's new managed container service, seeking to have compute instances in hundreds of cities [4] Security Landscape - Security is a major revenue driver for Akamai, with market-leading solutions for web app firewall, bot management, API security, and ransomware protection [1][7] - Attack rates and penetrations are increasing, driving demand for Akamai's security solutions that stop damage caused by attacks, including ransomware [7][8] Generative AI & Skills - Generative AI is making the field of security more evolving and nimble [9] - Akamai is seeing tremendous efficiencies across most job types by leveraging Gen AI, and is providing training to employees to use Gen AI tools [10] TikTok Situation - While there's always risk, Akamai believes a deal regarding TikTok has been structured, and the ban has been postponed several times [5][6]

Financial Data and Key Metrics Changes - Adjusted earnings for Q2 2025 were reported at $1.4 billion or $2.2 per share, reflecting a 16% decrease year-over-year due to less favorable underwriting and lower investment margins [8][21] - The adjusted return on equity was 14.6%, above the cost of capital and near the mid-teen target range [9] - Free cash flow allowed the company to return approximately $900 million to shareholders through dividends and share repurchases [9][18] Business Segment Data and Key Metrics Changes - Group Benefits adjusted earnings were $400 million, down 25% from the previous year due to less favorable life and non-medical health underwriting [10][22] - Retirement and Income Solutions (RIS) reported adjusted earnings of $368 million, down 10% year-over-year, primarily due to lower recurring interest margins [12][24] - Asia adjusted earnings were $350 million, down 22% year-over-year, with sales up 9% on a constant currency basis [14][26] - Latin America adjusted earnings totaled $233 million, up 3% and 15% on a constant currency basis, driven by volume growth [28] - EMEA posted adjusted earnings of $100 million, up 30% year-over-year, primarily due to strong volume growth [29] Market Data and Key Metrics Changes - Total liability exposures increased by 6% year-over-year, driven by growth in UK longevity reinsurance [13] - General account assets under management in Asia rose by 6% year-over-year on a constant currency basis [14][27] - Adjusted premiums, fees, and other revenues in Group Benefits grew by 4% from a year ago [10][23] Company Strategy and Development Direction - The company is executing its "new frontier growth strategy," focusing on managing expenses, returning capital to shareholders, and capitalizing on market trends [7][19] - Strategic partnerships, such as with Workday, aim to enhance the benefits experience and drive sales growth [11] - Recent acquisitions and strategic transactions, including Pinebridge Investments and Chariot Re, are expected to support growth in investment management [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on commitments despite the current economic environment [7] - The company anticipates improvements in underwriting and investment margins in the upcoming quarters [39] - Management noted that the current quarter's earnings do not fully reflect the company's earnings power, with expectations for better performance in the second half of the year [36] Other Important Information - The company repurchased approximately $500 million of its common stock in Q2, bringing the total year-to-date repurchases to over $2 billion [18][34] - Cash and liquid assets at holding companies were reported at $5.2 billion, exceeding the target buffer range [18][34] - The effective tax rate on adjusted earnings was approximately 24%, at the bottom end of the guidance range [30] Q&A Session Summary Question: Observations on elevated claims in the non-medical health sector - Management indicated that the elevated claims were not surprising and attributed them to normal fluctuations, expecting improvements in the third and fourth quarters [38][39] Question: Outlook for Chariot Re and sidecars - Management sees Chariot Re as a growth vehicle, focusing on MetLife-originated liabilities and expects more transactions in the future [44][46] Question: Strong sales in Japan and Korea - Management highlighted strong sales performance driven by new product launches and expects this momentum to continue [49][50] Question: Stability of retirement spreads - Management expects core spreads to remain stable, with some seasonal impacts anticipated in Q3 [54][56] Question: Analysis of disability claims - Management clarified that the pressure on disability claims was due to specific high-value claims and not indicative of broader trends [61][63] Question: Update on the PRT market - Management noted a lighter quarter for PRT but expects jumbo cases to transact in the second half of the year, maintaining a disciplined pricing approach [95][97] Question: Implementation of Gen AI - Management expressed excitement about AI's potential, emphasizing ongoing investments in technology to enhance efficiency and drive growth [100][102]

Financial Data and Key Metrics Changes - Adjusted EBITDA reached $165 million, a 2% year-over-year increase, while adjusted earnings per share rose 4% year-over-year to $1.92 [4][24] - Global rooms increased by 2% year-over-year, with a 3% net increase in more revenue-intensive rooms [4][24] - Domestic RevPAR declined approximately 1.6% year-over-year, while overall RevPAR decreased by 2.9% due to reduced government and international travel [27][32] Business Line Data and Key Metrics Changes - The domestic extended stay room system size grew by 10% year-over-year, with a 7% increase in domestic openings [24][25] - The Comfort brand saw a 50% increase in global openings and a 23% year-over-year rise in domestic franchise agreements awarded [25] - The upscale segment expanded by 15% year-over-year, with nearly 29,000 upscale global rooms in the pipeline, a 7% increase over the prior quarter [13][25] Market Data and Key Metrics Changes - International business achieved a 10% growth in adjusted EBITDA, with a 5% year-over-year expansion in the rooms portfolio [4][6] - The Canadian lodging market is projected to grow at an average annual rate of over 5% over the next five years, reaching over $50 billion in total revenues by 2030 [6] - The EMEA region saw a 7% increase in room count year-over-year, with approximately 4,000 rooms onboarded under direct franchise agreements [7] Company Strategy and Development Direction - The company is transitioning to a fully direct franchising model in Canada, expanding its product offering from eight hotel brands to a full portfolio of 22 [6] - Strategic acquisitions and partnerships are being pursued to enhance international market share, including a recent acquisition of the remaining 50% interest in Choice Hotels Canada [5][30] - The focus on revenue-intensive segments is expected to drive long-term growth, with 98% of the rooms in the pipeline belonging to these segments [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic consumer's resilience, citing increased disposable income and a favorable travel environment [17][56] - The company anticipates continued growth in the extended stay segment, which has shown resilience during uncertain economic times [10][18] - Adjusted domestic RevPAR expectations have been revised to a range of -3% to flat for the remainder of the year, reflecting a more cautious outlook [32] Other Important Information - The rewards program expanded to nearly 72 million members, an 8% year-over-year increase, and was recognized as the top hotel rewards program by U.S. News and World Report [19][20] - The company returned $137 million to shareholders year-to-date, including $27 million in cash dividends and $110 million in share repurchases [30] Q&A Session Summary Question: How does the company decide on direct versus master franchise in different markets? - The decision is based on market fundamentals, including the ability of small business owners to aggregate capital and the regulatory environment [35][36] Question: What is the growth outlook for Canada? - The company expects healthy growth in Canada, with a strong existing base of franchisees and a focus on both new construction and conversions [41][44] Question: What are the long-term expectations for international EBITDA? - International EBITDA is currently about 6% of total EBITDA, with significant growth opportunities anticipated in the coming years [47][50] Question: What are the current trends affecting RevPAR guidance? - The company noted softness in international inbound and government travel as key headwinds impacting RevPAR expectations [55][56] Question: Can you clarify the operating profit guarantee and its impact on EBITDA? - The operating profit guarantee is evaluated annually, with a total potential payment of $20 million over the life of the agreement [70][71] Question: How is the company managing occupancy and rate in the current environment? - The company is focused on maintaining occupancy while managing costs, particularly in the extended stay segment, which has lower costs per occupied room [76][78]